Understanding the Consumer

• Market research


  the process of gaining information on customers, markets and trends through primary and secondary data
• Purpose of market research no1

  Identify and understand customer needs
• purpose for market research no2

  To identify gaps in the market
• purpose of market research no3

  To reduce business risks
• purpose of market research no4

  To make informed business decisions
• Market segmentation??

  Dividing a market into distinct groups with similar needs, characteristics, or behaviors.
• Demographic ??

  relates to the statistical data relating to the population and particular groups within in
• Ways a market can be segmented?

  •age

  •gender

  •income

  •lifestyle

  •area/region

  •ethnicity

  •religion
• Location??

  Is key because the product depends on where it will have the most influence.
• Lifestyle??

  lives and attitudes shared by consumers
• income?

  How much people earn is important in selling a product.
• Social class??

  Products targeted at ABC1-DE consumers.
• Benefits of market segmentation no1

  Advertising spend can be more cost efficient as consumer base is more specific.
• Benefits of market segmentation no2

  Most and least profitable customers can be identified.
• Benefits of market segmentation no3

  Least profitable markets can be avoided